If your small or medium business uses Microsoft Dynamics 365 Business Central and you want systems that actually fit the way your teams work, Business Central customization for SMBs is where you should focus. We’ve helped many organizations move from “out of the box” frustration to tailored, efficient processes that reduce manual work, give leaders better visibility, and protect future growth. In this article we’ll walk through what customization really means, when it’s the right choice, how to do it safely and cost-effectively, and how you can measure the business value.
Why customize Business Central?
Business Central gives SMBs a modern cloud ERP with finance, supply chain, sales, inventory, and project capabilities. That’s a great starting point, but every business has unique processes, industry rules, or integrations that the standard product won’t cover perfectly. Customizing Business Central lets you:
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Align the system to your processes so users spend less time fighting the UI and more time delivering value.
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Automate repetitive tasks like data entry, approvals, or reconciliation to cut errors and free staff for higher-value work.
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Integrate with specialized apps such as ecommerce platforms, niche manufacturing tools, or payroll systems so data flows reliably across the stack.
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Deliver targeted reporting and dashboards so decision makers see the metrics that matter to your business, not generic KPIs.
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Protect user experience with role-based pages and simplified processes for people who only need a small slice of functionality.
Customization is not about hacking the product. It’s about extending Business Central in a controlled, maintainable way that supports business goals. Done well, it pays off quickly in efficiency and better decisions.
What kinds of customization do SMBs usually need?
Customizations fall into a few common buckets. Knowing these helps you choose the right approach and avoid unnecessary work.
Configuration and setup
Sometimes the system already supports a requirement, but it needs the right configuration. This is the least risky and most cost-effective path. Examples:
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Setting up posting groups, dimensions, and ledgers for accurate financial reporting
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Configuring workflows for purchase approvals or sales discounts
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Defining bins and warehouse policies for inventory tracking
Custom extensions
When out-of-the-box features fall short, extensions built in AL (the Business Central programming language) let you add fields, pages, business logic, or entirely new modules. Extensions are the recommended approach because they keep the base product untouched, simplifying upgrades.
Integrations and data synchronization
SMBs often need to connect Business Central with other systems, including:
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Webstores and marketplaces
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Payroll, HR, or CRM systems
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Manufacturing execution systems (MES)
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Shipping and logistics providers
These integrations use APIs, webhooks, or middleware platforms like Microsoft Power Automate or Azure Logic Apps to move data reliably and securely.
Reporting and analytics
Standard reports don’t always reflect critical operational metrics. Integrating Business Central with Power BI or building custom reports inside Business Central can deliver finance, inventory, and sales insights tailored to your dashboards.
User interface and experience
Small improvements to pages, lists, and role centers can dramatically increase user productivity. That might include custom pages for field teams, simplified mobile layouts, or task-driven interfaces that guide users through a process.
How to decide what to customize
Not every requested change should become a customization. We recommend a pragmatic approach that balances business value, complexity, and long-term maintenance.
Evaluate impact and frequency
Ask these simple questions for each requested change:
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How often does the problem occur? (Daily problems deserve higher priority.)
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How much time or cost does it waste? (Estimate hours saved or error reduction.)
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Will this support growth or compliance needs? (Scalable processes are worth investing in.)
Choose configuration first
Start with out-of-the-box configuration. Many issues can be resolved by setting up dimensions, fields, or workflow rules correctly. Configuration is cheaper and reversible.
Prefer extensions over customizations that change core
When coding is necessary, use extensions. Extensions keep the standard product intact, which reduces upgrade risk and makes it easier to adopt new Business Central releases.
Consider integrations instead of feature duplication
If another best-of-breed app handles a specific function well, integrate it rather than rebuilding the same functionality inside Business Central. Integration leverages each product’s strengths.
Technical approaches: what works best for SMBs
There are technical patterns that fit SMB budgets and timelines. Below we outline pragmatic choices and why they make sense.
AL extensions and the app model
AL extensions are the recommended way to customize Business Central. They let you:
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Add or change pages, tables, and codeunits without modifying the base product
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Package features so they can be deployed and updated independently
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Control dependencies and versioning for safer upgrades
We often start with small, focused extensions that address immediate pain points and then expand modularly. That keeps risk low and shows value quickly.
-- Example AL snippet adding a custom field to the customer table
tableextension 50000 CustomerExtension extends Customer
{
fields
{
field(50000; "Account Manager"; Code[20]) { }
}
}
This is a tiny example, but it illustrates how extensions add fields without touching base objects.
APIs and web services
Business Central exposes RESTful APIs and OData endpoints. For SMBs that need reliable integrations with ecommerce platforms, CRMs, or logistics providers, APIs are usually the best route. They support real-time synchronization, secure authentication, and are supported by middleware like Azure Logic Apps and Power Automate.
Power Platform integration
Power BI, Power Automate, and Power Apps are powerful companions for Business Central customization for SMBs. Typical patterns:
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Power BI for tailored dashboards and scheduled data refreshes
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Power Automate for glue logic between Business Central and SaaS tools
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Power Apps for lightweight custom mobile apps that use Business Central data
Using the Power Platform reduces development time and lets non-developers build simple automation flows, while developers focus on more complex AL extensions.
Azure services for scalability
If you have heavier automation or analytics needs, Azure functions, Service Bus, or Data Factory can be added. For SMBs, we typically recommend these only when the business needs justify the extra cost and operational overhead.
Best practices for maintainable customization
Customization without discipline becomes technical debt. We follow proven practices to keep solutions sustainable.
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Modular design: build small, focused extensions that do one thing well.
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Version control: store AL code in Git and use CI/CD pipelines.
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Environment strategy: maintain separate dev, test, and production environments.
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Automated testing: include unit and integration tests for critical logic.
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Documentation: document business requirements, design decisions, and deployment steps so changes are transparent.
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Governance: define who can request, approve, and deploy changes.
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Upgrade planning: schedule regular checks against Microsoft updates to ensure compatibility.
Security, compliance, and data governance
Security and data governance are especially important when customizing an ERP that holds financial and customer data. For SMBs we focus on:
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Role-based access control to restrict who can see or change sensitive fields
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Audit trails for financial transactions and configuration changes
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Secure integration patterns using OAuth and certificate-based authentication
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Data residency and retention policies where regulatory compliance matters
We also recommend regular security reviews of custom code and third-party extensions to avoid creating new vulnerabilities.
How much will customization cost and how to measure ROI
Costs vary depending on complexity, but SMBs can think in tiers:
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Low complexity (configuration and small UI changes): days to a few weeks.
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Medium complexity (extensions, simple integrations, reports): a few weeks to a couple months.
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High complexity (deep integration with multiple systems, heavy automation or custom modules): several months.
To measure ROI, quantify time savings, error reduction, and business outcomes. Example metrics include:
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Hours saved per month from automated processes
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Reduction in late shipments or invoice disputes
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Faster month-end close times
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Sales conversion improvements from integrated CRM workflows
We help clients build a business case that connects the technical solution to measurable outcomes. That makes prioritizing work easier and helps justify investment.
Common pitfalls to avoid
We see the same missteps often enough that it’s worth calling them out.
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Skipping requirements design. Rushing to code without clear requirements leads to rework.
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Over-customizing. Adding features because they are possible, not because they solve a measurable pain.
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Not planning for upgrades. Customizations that modify core objects make upgrades hard.
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Poor testing. Failing to test integrations and edge cases results in production surprises.
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Lack of stakeholder buy-in. Change management and user training are essential.
A practical roadmap for SMBs
Here’s a practical, phased roadmap you can follow for Business Central customization for smbs.
Phase 1: discovery and quick wins
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Map current processes and pain points with key users.
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Identify configuration changes that can be implemented immediately.
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Prioritize 2 or 3 high-impact small extensions or automations that show fast ROI.
Phase 2: solution design and integration planning
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Document detailed requirements and acceptance criteria.
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Select technical approach: AL extension, API integration, or Power Platform solution.
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Design security and data flows with compliance needs in mind.
Phase 3: build, test, and train
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Develop in a sandbox with version control.
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Automate tests and run user acceptance testing with real scenarios.
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Train users and update process documentation.
Phase 4: deploy and measure
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Deploy to production using a controlled release process.
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Measure the defined KPIs and collect user feedback.
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Plan follow-up enhancements based on actual usage.
Phase 5: operate and optimize
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Monitor performance and errors, and apply patches as needed.
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Review customizations annually to ensure relevance and upgrade compatibility.
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Consider moving repeatable automations into standard extensions as they mature.
How FluxxIT approaches Business Central customization for SMBs
We focus on solving business problems, not just delivering code. Our approach blends technical discipline with practical business sense:
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Business-first discovery. We start by mapping the process and outcomes clients care about.
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Minimal viable extension philosophy. We deliver small, testable pieces that deliver immediate value.
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Secure integration patterns. We use supported APIs and secure authentication schemes to protect data.
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Managed services. After go-live we provide ongoing support, monitoring, and upgrade assistance.
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Training and adoption. We run targeted user training and create role-based materials so your team actually uses the improvements.
If you’re interested, we can run a short assessment to identify quick wins and build a roadmap aligned with your growth plans.
Testing, deployment, and ongoing support
A successful customization program includes more than building features. We emphasize:
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Automated and manual testing to catch integration edge cases.
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Staged deployments across dev, test, and production to reduce risk.
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Rollback plans for every release so you can recover quickly if issues arise.
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Monitoring for data synchronization failures and performance bottlenecks.
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Continuous improvement cycles based on user feedback and evolving business needs.
How to get started today
If you want to move forward with Business Central customization for smbs, here are practical next steps you can take this week:
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List the top three recurring pain points in your finance or operations workflows.
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Identify how much time each pain point costs your team per month.
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Decide whether configuration, an extension, or an integration is the likely solution.
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Schedule a 60-minute assessment with an experienced partner to validate the plan and estimate effort.
We offer a discovery engagement that maps your processes, recommends a prioritized backlog of customizations, and provides a clear estimate. That helps you fund the highest-impact work first and avoid costly experiments.
FAQ: quick answers
Will customizations break my Business Central upgrades?
Not if you follow the extension model and avoid directly modifying base objects. We also test customizations against new releases in sandbox environments before production upgrades.
Can SMBs afford customization?
Yes. Many customizations are small and deliver rapid payback. We recommend starting with high-frequency, high-cost pain points to maximize ROI.
What about third-party extensions?
ISV solutions can be a great fit for industry-specific needs. We evaluate any third-party app for security, support, and upgrade compatibility before recommending it.
Closing summary
Business Central customization for smbs is less about reinventing the ERP and more about making it work for your real business. By focusing on configuration first, using AL extensions, choosing smart integrations, and applying disciplined governance, SMBs can get a tailored system without taking on unsustainable risk. We help organizations identify quick wins, implement maintainable solutions, and measure the business outcomes that justify investment.
If you want a partner to help you map requirements, design sensible extensions, and run upgrades without surprises, we at FluxxIT specialize in delivering those services with an emphasis on value, security, and long-term maintainability. Reach out to start a short discovery session and build a roadmap that fits your business and budget